What’s been happening?

Pound Sterling – UK Markets 

The UK has seen the biggest monthly drop in almost eight years in April. The Halifax index which is showing the property values plunging by 3.1% in April from the previous month is adding to signs of weakness in Britain’s property market. The average prices now stand at £220,962, mortgage lender Halifax said in their report today, which is the biggest drop since September 2010. London has seen the greatest slowdown, with monthly mortgage approvals slipping and less interest being shown by potential buyers.  

The Brexit uncertainty is creating risks of a bigger impact on economy growth and employment. Recent Brexit talks have not been doing much good to help the situation. The ongoing EU customs union row within the Conservative party is providing no certainty over what kind of Brexit the UK should be expecting. Boris Johnson yesterday called PM May’s new proposed EU partnership plan “crazy” and not one that would allow the UK “take back control” over trading at all. As a so called “civil war” within the Conservative party continues, the UK’s trading as well as the pound’s future grow more volatile. Markets continue to pay close attention to development as discussions will continue throughout this week. 

US Dollar – US Markets

All markets will be focusing on the US President Donald Trump’s speech later today, when a decision regarding Iran nuclear deal will be announced. The decision will tell us whether he will pull out of the Iran nuclear deal or stay in and continue working with European allies, who believe that the deal has successfully ceased Iran’s nuclear efforts so far. 

Trump has disagreed with the agreement that was signed between his predecessor, Barack Obama, France, Germany and Britain as well as Russia and China from the start, calling it “worst deal ever negotiated”. According to the US President, not enough important checks and sanctions are being carried out by the European allies to make sure that Iran is nuclear weapon-free. Predictions are not looking too positive, as the US is expected to pull out. Financial markets are watching the decision closely, on Monday oil prices broke above $70 a barrel, reaching their highest level since end of 2014. 

Euro – European Markets

The European stocks opened broadly flat this morning, despite of performing well in Asia. The Stoxx Europe 600 Index fell after two days of gain, down 0.05%, pulled lower by oil and gas companies and miners. Investors have been preparing for Donald Trump’s decision on the Iran nuclear deal, a move which could disturb global oil supply. 

However, the worst stock performance was seen from Italy, as the country gets ready for fresh election, which is likely to disrupt their trading markets for a while. 

What’s coming up? 

UK: There is very little prominent data coming out of the UK today, Boris Johnson is visiting the White House for last minute Iran nuclear deal discussions, we will be waiting for his feedback about the visit. Bank of England policy decision will be coming out on Thursday. 

US: The US, as well as other global financial markets will be focusing on President Trump’s Iran nuclear deal decision speech later today, 1800 GMT. Oil prices are expected to shift.

EU: No major data is expected to come out of Eurozone today. France, Germany and Britain will be focusing on President Trump’s speech on Iran nuclear deal, which they all are part of. Oil prices across Europe are likely to shift based on the decision.